Gold prices opened on the Multi Commodity Exchange (MCX) at Rs 62,240 per 10 grams and reached an intraday low of Rs 62,200. In the international market, gold prices hovered around $2,033.4 per troy ounce. Meanwhile, silver opened at Rs 69,659 per kg on the MCX and hit an intraday low of Rs 69,250. Silver prices in the international market were around $22.56 per troy ounce.
Analysts attribute the correction in gold and silver prices to better-than-expected data from the United States and a delay in rate cut expectations. Multiple US Federal Reserve officials indicated that there was no rush to cut interest rates, considering signs of sticky US inflation and resilience in the job market. Traders have been adjusting their expectations, with the probability of rate cuts in May and June being scaled back.
Sales of new U.S. single-family homes in January rose less than expected, and the Dallas Fed‘s monthly manufacturing activity index reported positive figures. The market now awaits data on US durable goods orders, and the focus for the week includes US GDP and the core personal consumption expenditures (PCE) price index, the US Federal Reserve’s preferred gauge of inflation.
Manav Modi, an analyst, suggests that gold on the domestic front could trade in a range of Rs 61,800 to Rs 62,500. The overall sentiment in precious metals is influenced by economic indicators and the Federal Reserve’s stance on interest rates.
